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Policy as a “porter” of RE component export or import? Evidence from PV/wind energy in OECD and BRICS

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  • Ogura, Yasuhiro

Abstract

Seeking empirical support for the Porter hypothesis (PH) applied to the trade of photovoltaic (PV) and wind energy components, this study examines effects of the interaction between innovative capacity and two kinds of renewable energy (RE) policies, feed-in tariff (FIT) and renewable portfolio standards (RPS), on export in OECD and BRICS countries. Meanwhile, the effect of such policies in import countries is estimated given prominent growth in RE component export by emerging economies and trade disputes with developed countries. The result reveals exporter innovative capacity as negatively correlated with their export when it is interacted with RPS dummy, suggesting inverse evidence for PH. On the other hand, importer annual PV share, which proxies demand for components, was positively associated with their import provided the presence of FIT/RPS. Overall, policies in importer countries exert a robust influence over their import growth, while those in exporter countries may not facilitate or have a negative effect on their export. The result above is in line with the theoretical implication on the effect of RE policy, while it contradicts to the narrowly strong version of PH. This indicates that positive effect of the interaction between policy and innovative capacity on export performance might depend on the distribution of the additional surplus from FIT/RPS.

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  • Ogura, Yasuhiro, 2020. "Policy as a “porter” of RE component export or import? Evidence from PV/wind energy in OECD and BRICS," Energy Economics, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:eneeco:v:86:y:2020:i:c:s014098831930427x
    DOI: 10.1016/j.eneco.2019.104630
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    More about this item

    Keywords

    Renewable energy; Feed-in tariff; Renewable portfolio standards; Innovation; International trade; Porter hypothesis;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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